All Forum Posts by: Claudio Garcia Zuniga

@Claudio Garcia Zuniga, there are so many aspects that I can highlight, but long story short, renting the home will be way less of a hassle than rent-by-the-room; however, your return will not be as significant. Overall, that's the tradeoff. As noted above, you need to be mindful of and verify local ordinances when renting by the room. If you pursue co-living properties, I would still highly encourage you to analyze the deal as an LTR as a backup strategy in case things go sideways. Rent-by-the-room properties can be absolute cash cows, but proper systems and management structure are crucial. 

Hi Claudio!

If you rent by room, chances are you are going to have higher cashflow than renting out the entire property as one.

You will be having more than one lease in the house, so there are a lot more moving parts that can increase your chances of vacancy and maintenance issues. I know a lot of very successful investors who rent by the room house hacking and continue to rent by room after they move out to increase their monthly cash flow. @Danielle Daly does this extremely well in Denver, CO and I'm sure has a few golden nuggets on how to mitigate a few of the cons I mentioned by being a very good operator. 

I have rented my properties by room while I live there and turned them into long term traditional rentals at move out. I definitely could've tried to maximize my monthly income by renting the property by room, but with HOA restrictions and my inability to comfortably find a property manager that manages rentals by the room were my biggest reasons to rent out the entire property under one lease.